Wall Street Scholars Test Questions with Correct Answers
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Wall Street Scholars
Institution
Wall Street Scholars
Wall Street Scholars Test Questions with Correct Answers
Which of the following is/are macroeconomic indicator(s)? - Answer-a) GDP
b) Inflation
c) Unemployment
d) Corporate Earnings
What is the benefit of a diversified portfolio? - Answer-Possible increased return and decreased risk
The g...
Wall Street Scholars Test Questions
with Correct Answers
Which of the following is/are macroeconomic indicator(s)? - Answer-a) GDP
b) Inflation
c) Unemployment
d) Corporate Earnings
What is the benefit of a diversified portfolio? - Answer-Possible increased return and
decreased risk
The goal of passive investing is to possibly match a benchmark/index by purchasing
assets that mirror the benchmark/index. - Answer-true
The bottom-up approach to investing focuses most of its decision-making on the
following: - Answer-individual companies
Fundamental analysis is typically - Answer-used with long-term time horizon in mind;
technical analysis is commonly used by short-term investors.
Active investing is typically performed by a professional money manager. - Answer-true
Three-fourths of the global economy is outside of the U.S. - Answer-true
A growth stock can be described as: - Answer-A stock with potential to grow faster than
other stocks in the same category.
Most experts consider which of the following to be the best benchmark available to
judge overall U.S. market performance: - Answer-c) S&P 500
The higher the standard deviation, the more the portfolio deviates from its average rate
of return, thus the riskier the investments. - Answer-true
When a person says, "The market is up today," they are generally referring to: -
Answer-The Dow Jones Industrial Average
An example of a base policy mix could be: - Answer-60% stocks/40% bonds
17. The timing of distributions from Social Security is important because: - Answer-.
Choosing an earlier distribution can result in a locked-in reduction to the monthly
amount.
, Generally, the later one elects to collect their Social Security benefits, the larger the
amount. - Answer-true
What is the federal reserve - Answer-makes sure that the money supply doesn't grow
too quickly, causing excessive inflation, nor to slowly, causing a pampering of economic
growth. It sets the nations monetary policy, supervises and regulates banking
institutions, maintains the stability of the financial system and providing financial
services to the depository institutions, the us government, and foreign institutions\
Monetary supply - Answer--set up by the federal reserve, the actions a central bank
takes to influence a country money supply and overall economic growth
what is ideal inflation - Answer-2-3% annually which keeps prices stable
If the FOMC, federal open market committee, wants to increase economic growth -
Answer-it reduces the target federal funds rate
if FOMC, federal open market committee wants to slow down the economy - Answer-it
raises the federal funds rate/target rate
Recent chairs of the Board include (fed) - Answer-Jerome Powell, Janet Yellen, Ben
Bernanke and Alan Greenspan
Defined benefit plan - Answer-a company retirement plan in which an employee
receives a clearly specified amount upon retirement and the employer bears the
investment risk
IRA-Individual Retirement Account - Answer-A personal savings plan that allows an
individual to set aside money for retirement, while offering tax advantages
401k - Answer-A defined contribution plan offered by a corporation to its employees that
allows employees to set aside pre-tax money for retirement
Erisa - Answer-A federal law that sets minimum standards for pension plans in private
industry
Drift Porting - Answer-Making adjustments to counteract the fact that different assets
have performed differently and now compromise different percentages of the portfolio
than originally intended
What is the typical minimum needed to establish a Separately Managed Account? -
Answer-100,000
This can be defined as a retirement savings program for individuals, in which yearly tax-
deductible contributions up to a specified amount can be made. The contributions are
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